Apemindo demands for removal of export tax

By Hiski Darmayana

The Association of Indonesian Mineral Enterpreneurs Association (Apemindo) demanded the government to scrap the current 20 percent export tax on raw minerals because it has harmed many local miners.

Apemindo Chairman Poltak Sitanggang said that applying the export tax to encourage the raw mineral ores to be processed at home also does not make sense as the required domestic smelters and refineries have yet to be constructed.

?We demand for the export tax be removed because it has killed many mining industry players,? he told Petromindo.com.

The government applied last year a 20 percent tax and quota on the export of raw mineral products in a bid to help prevent a rush in export ahead of a planned 2014 ban. The government, however, last month temporarily lifted the export quota as part of overall fiscal measures to help defend the weakening rupiah and widening current account deficit.

Poltak said that Apemindo will support the government?s policy to ban export to push for the development of downstream industry to generate greater added value for the nation as long as the necessary domestic smelters have been developed.

?To develop the downstream industry, government support is required in various aspects particularly developing the necessary infrastructure facilities. Once again, not export tax is required to develop the downstream industry,? he said.

Editing by Reiner Simanjuntak